School Director Is Pleased with Results of Processes Audit
Though the audit report on the financial system of Riverview Charter School revealed flaws in its internal controls, Eileen Williams, school director, welcomed the findings, saying the independent audit firm recommended solutions that can strengthen internal controls of the school.
For the first time, Riverview, which opened in August 2009, had its financial system independently audited. But the findings did not turn out well as the audit found out some flaws with the internal controls and compliance with state law.
The accounting firm McCay, Kiddy and Associates reported weaknesses in Riverview’s internal control in its financial system in which the management has little monitoring over a person’s handling of the finances for certain programs.
McCay, Kiddy and Associates also found out how Riverview tolerates poor security with the handling of its cash, with some being left unsecured in classrooms. Accounting employees have little knowledge with the basic principles in accounting, the firm added.
According to an audit report for the fiscal year 2010, Riverview lacks resources to hire an in-house certified public accountant so it outsources its accounting from an outside firm.
Williams finds the separation of controls in Riverview’s financial system hard to achieve due to the small size of the school, with even its lunch and after-school programs for instance are managed full-time by only one person.
She said that there has been an improvement in the school’s financial system, though, this school year with some office staff given additional duties. She cited the front office’s task of collecting lunch money as an indication of it.
Williams said the school management handles the school’s funds appropriately since the audit firm has not shown any lapses in the management.
Former CPA Jim Bequette, chairman of the Beaufort County Board of Education’s audit committee, considered the findings in Riverview’s financial system normal for a newly established organization.